JPMorgan Slashes 1,800 Jobs In Its Mortgage Division


A new round of job cuts has apparently been announced at JPMorgan Chase & Co. (NYSE:JPM). This new round of cuts will affect 1,800 positions in the company’s mortgage division, reports CNBC’s Kayla Tausche.

JPMorgan Slashes 1,800 Jobs In Its Mortgage Division

Details On The Latest Cuts At JPMorgan

CNBC’s source said JPMorgan Chase & Co. (NYSE:JPM) announced on Friday that it would slash the positions and that most of them would come from two main geographical areas: Albion, N.Y. and Tampa, Fla. According to the source, the bank’s entire call center in Albion will shut down. Tampa, on the other hand, has recently been a major area of growth for the bank.

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Other Recent Job Cuts At JPMorgan

JPMorgan Chase & Co. (NYSE:JPM) said in April that it would eliminate 17,000 positions over the next two years. It had said in February that it would slash almost 19,000 jobs by next year. The bank has said that most of the jobs would be cut from its mortgage division, which focuses on attempting to get payments from homeowners who are behind on their mortgages.

The fact that the job cuts are happening in this particular division indicates that the U.S. economy is strengthening because fewer homeowners are falling behind on their mortgage payments. In fact, the mortgage servicing divisions of other banks are also seeing job cuts.

Job Cuts Elsewhere In The Banking Industry

Bank of America Corp (NYSE:BAC) has been plagued with the bad mortgages doled out by Countrywide, which it acquired in 2006. CNBC reports that in just a single year, the bank’s 60-day or more delinquent mortgage portfolio fell from $1.1 billion to $700 million. As a result, the bank has cut about 14,000 positions in its mortgage servicing department.

The U.K. banking industry has also sustained numerous bank cuts. By the end of this year, the top four banks in Britain will slash 189,000 jobs. That’s a 24 percent decrease in the number of employees working in the banking industry at U.K. banks.